Compare Texas Electric Rates

Because of the recent 2023 heat wave in the Southwest, Texas electricity prices increased with the temperatures. Texas energy rates may begin to decrease when temperatures do over the next couple of months. 

However, electricity prices change daily, so be sure to use the Choose Energy marketplace to explore energy rates in your area at any time of the year. Enter your ZIP code to get started.

The plants responsible for producing electricity run on natural gas, which is the source of most of Texas’ electricity, according to the EIA. The more expensive it is to run the plants, the more they need to charge to cover their expenses. Even with its ranking as the top natural gas producer in the U.S., Texas has been struggling to provide cheap electricity plans to its residents due to spiking natural gas prices. 

However, the current push toward renewable energy sources could make natural gas a more competitively priced alternative and gradually reduce natural gas rates, according to the EIA. Texas currently leads the country in wind-sourced electricity (26% of U.S. production) and ranks second in solar generation.

About 85% of Texas has a deregulated energy market, giving residents and businesses the power to choose their electricity provider. Electric rates frequently shift due to changes in energy demand and seasonality. Higher summer temperatures have led to increased energy prices.

Choose Energy is an independent electricity marketplace that helps you compare Texas power rates to find the best rate available near you today. We also have useful buying guides and resources to help you understand the energy industry. Enter your ZIP code to compare Texas electric rates and providers in your area.

Customers receive their electricity directly from the local utility company in regulated states. However, in deregulated areas, utility companies and electric providers perform different roles. The utility company is responsible for transmitting electricity, maintaining electrical infrastructure, and restoring power during an outage. Your utility is determined by where you live in Texas.

Residents cannot choose their utility, but they do have the power to choose their Texas electricity provider. The electricity provider is responsible for selling electricity to consumers. Because deregulation in Texas has increased competition among energy providers, it’s smart to compare rates to get the best electricity plan near you. Enter your ZIP code to explore available electric providers in your area.

The term “power to choose” is common in the deregulated energy market. However, it is also the name of the official website of the Public Utility Commission of Texas (PUCT), the regulatory body over the Texas electricity market.

PowerToChoose.org allows customers to browse available providers and plans in their area. However, consumers are redirected away from the site when they attempt to sign up for a plan. 

Choose Energy is different: Our simple-to-use online marketplace provides users with the available electric rates, plans, and providers in their area — all in one place. We list electricity provider ratings, term lengths and rate types, potential fees, and much more. Signing up for a new plan is quick and easy. Enter your ZIP code to get started.

You can find various types of energy plans on the Choose Energy marketplace. Compare energy rates from the best plans in Texas by entering your ZIP code and selecting the right one for your electricity needs.

Fixed-rate energy plans

Fixed-rate plans provide stability and predictability for monthly electricity bills because you pay a fixed rate. Fixed-rate plans let you secure an electric price for the duration of your electricity contract, which can last between 12 and 36 months. The only variables with fixed-rate plans are your energy usage and government fees or taxes. Texas electric companies offer fixed-rate plans for customers who want reliability and protection from the highs and lows in the energy market.

Variable-rate energy plans

Variable-rate plans are best for people looking to avoid a contract. Unlike fixed-rate plans, you won’t need to sign a contract with variable-rate plans — you can switch electricity plans at any time. However, the Texas electric rate you pay each month will fluctuate based on the electricity market and seasonal demand. Electricity rates can increase when demand goes up. 

No-deposit options

When you sign up for an energy plan, you may be required to pay a deposit if you don’t meet a provider’s credit threshold. If you want to avoid the deposit and credit check altogether, Choose Energy can help you find light companies with no-deposit electricity plans. Our marketplace offers prepaid energy plans that allow you to skip the deposit and pay for your electricity upfront. Enter your ZIP code and use the filter feature to find no deposit and prepaid options in your area.

Indexed rates

With an indexed rate, the rate you pay is calculated based on a commodity index for energy. Providers use various formulas to determine the rate you pay in an indexed plan, so carefully read the contract to ensure you fully understand your rate. Indexed rates are less common than fixed or variable rates. 

Time-of-use plans

Time-of-use plans allow customers to take advantage of lower rates if they use electricity at off-peak hours or times of the year. While you might pay more if you use electricity during peak hours (during the day, weekdays), you can enjoy a lower rate between 11 p.m. and 7:00 a.m. as well as on weekends and holidays. Your rate will likely be cheaper in lower-demand times of the year, such as spring and fall.

Texas green energy plans

Texas is a national leader in renewable energy. The Lone Star State produces the most wind energy in the country and is one of the top producers of solar power, which makes finding a green energy plan in Texas easy. 

Every Texas electricity plan includes some percentage of renewable energy in the mix. Some providers specialize in only offering 100% green energy plans, including Gexa Energy. Enter your ZIP code on this page and filter for green energy to find renewable energy rates in your area.

Texas electric rates for business

Texas businesses also have the power to choose their energy provider. Nearly three million businesses in deregulated areas across Texas have taken advantage of low rates, competitive plans, and green energy options. Choose Energy can build a custom business electricity quote tailored to companies of all sizes. 

Contact our energy experts about your Texas business electricity plan or request a quote to fit your commercial needs. Once we understand your energy needs, we’ll compare business energy plans in your area to help you find the best commercial electricity deal available.

Interested in switching to a different energy plan? Choose Energy can help you find the best electric companies near you. Use our marketplace to choose the plan that fits your needs, and sign up in a few easy steps.

Explore Texas energy rates

When you enter your ZIP code, the Choose Energy marketplace will show you low rates and plans in your area. Use the filters to bring up tailored results, such as a certain rate type, term length, or amount of green energy.

Go over the details of the plan

Before choosing an energy plan, it’s important to understand the plan. Make sure to review the Electricity Facts Label, a separate resource included with every plan. You’ll find details such as the rate type, percentage of renewable energy, delivery fees, and more.

Sign up for affordable electricity rates in Texas

Once you’ve chosen the best plan for you, signing up is quick and easy. Our energy experts will guide you through each step and help you enroll in your new Texas energy plan. From there, your provider will set up electricity service without any interruption in your power.

If you are moving and need to start electricity service today, we can help. Some providers have the option for same-day electricity if you order before 3 p.m. CST. You won’t need to worry about any interruptions to your service. Simply set up your account and enjoy your new energy plan.

When shopping for energy in Texas, it’s important to search for energy rates and plans specific to your area. Utility companies charge transmission and delivery fees (TDU), which vary by location and affect your rate. With the Choose Energy marketplace, you can shop for the best electric companies, plans, and energy rates available in your area. Enter your ZIP code to check for the most accurate and up-to-date electricity rates near you, and sign up with a cheap light company today.

If you are moving to Texas, you can keep your energy plan with your current provider if it offers electricity service at your new address. If you are ready for a new provider or your current one does not operate in your new location, you can switch your electricity provider without paying an early termination fee. 

Shop Texas energy plans on Choose Energy’s marketplace up to 90 days before moving, and select your move-in date when you sign up. Your provider will handle the rest.

Most Texas homes have smart meters, meaning you will not need to schedule a technician visit to begin electricity service. Instead, your new provider will activate your service remotely on your selected date.

Founded in 2008, Choose Energy is an unaffiliated marketplace offering all-inclusive pricing and clear guidance for consumers. When you enter your ZIP code, you can filter for providers, rate types, contract lengths, green energy plans, and more. We’ll help you sort through your options to find the best electricity plan for your home or business. Here’s how:

• Enter your ZIP code. The rates you find on our marketplace are all-inclusive. You will find a variety of plan types, including fixed rate, variable rate, and green energy plans. We provide honest and straightforward reviews of the electricity providers on our site to help you select the best electric company for your home or business. 
• Sign up online. Once you decide on a plan, we’ll walk you through the sign-up process in a matter of minutes.
• Enjoy your new energy plan. Your new electricity provider will take care of the rest without any service interruption for you.

Why does Choose Energy run a credit check?

The providers we work with require a soft credit check that doesn’t affect your score to determine whether your credit score meets a set threshold. If your credit score falls below that threshold, they may require a deposit to begin service. We’ll check your score against all of the providers on our marketplace so you can see the best electricity rates in Texas and find a plan to fit your needs. Check out our deposits guide for more information about the credit check process. Then, enter your ZIP code to find electric plans near you.

How do I find the best electricity plan in Texas?

Going through all the Texas light companies, rates, and plans in your area is time-consuming. The Choose Energy marketplace allows you to select top energy plans and rates in your area without visiting multiple provider sites. Enter your ZIP code to compare rates and electricity plans all in one place.

Who has the cheapest electricity rates in Texas?

Several providers, such as Frontier Utilities and  Gexa Energy, frequently offer some of the cheapest electricity rates in Texas. The provider who has the cheapest electricity per kWh will alternate throughout the year, so enter your ZIP code to find the most accurate rates in your area.

What is a good energy provider in Texas?

Texas has over 15 energy providers to choose from. The Choose Energy marketplace lets you explore rates from trusted light companies side-by-side and pick the best provider that suits your home or business. Some of the top energy providers in Texas include TXU Energy, Reliant Energy, and Pulse Power. Enter your ZIP code to find today’s rates and plans from electricity providers near you.

How quickly can I start service?

If you are signing up for a new plan and have a smart meter installed at your home (most Texans do), you could be able to begin service the same day you sign up for your plan. If you switch electricity providers, the process could take up to five business days.

What should I do if my power goes out?

Your local utility company is in charge of restoring power during a power outage. If you lose power, you need to contact your utility, not your provider. To learn more about your utility company and how to contact them, visit our complete list of utility companies.

How much will I be charged for electricity?

Your Texas monthly electricity bill depends on your rate and the amount of energy you consume. It will also depend on the rate type your plan has, such as a fixed rate or variable rate. When signing up for an energy plan, be sure to pay attention to the rate, the Electricity Facts Label (EFL), and the terms of your electricity contract. Knowing how to read your bill can lead to a greater understanding of your electricity plan and charges. Review our guide to reading your bill for a detailed walkthrough.

How can I lower my electricity bill in Texas?

One way to lower your monthly electricity bill in Texas is to switch electricity plans with a lower rate. Securing low rates is often easier during milder seasons when demand is lower, such as spring and fall. Rates can change daily, so check the Choose Energy marketplace today to find out which company has the best electricity price that meets your usage. You can also lower your energy bill by reducing the electricity you use each month.